Chapter 2 Summary and Analysis

In 1984, a rumor penetrated the metal trading world that President Reagan had succumbed to a cerebral hemorrhage. Although there had been no official word from the White House, the story had spread through the trading world like wild fire. Trades were escalating. The demand for precious metals like gold and silver was burgeoning. The traders comforted themselves with speculation that the White House had delayed confirmation of the President's passing until VP Bush made it back from Russia. Gold was being sold but it was in short supply and not physically accessible. President Reagan's passing had fueled demand for the earth's resources. A ruthless fight ensued.

As the afternoon wore on, Reagan's death was still not confirmed although the rumor had grown even stronger in the market. The acquisition of gold was a growing problem. The dollar began to drop against...